LIVERPOOL was today embarking on an historic new era after being named as European Capital of Culture for 2008.

LIVERPOOL was today embarking on an historic new era after being named as European Capital of Culture for 2008.

The news, delivered at breakfast time yesterday by Culture Secretary Tessa Jowell, sparked a day of delirious celebration in Merseyside, which continued late into the night.

Council leader Mike Storey said: "This is like Liverpool winning the Champions League, Everton winning the double and the Beatles reforming all on the same day - and Steven Spielberg coming to the city to make a Hollywood blockbuster about it."

People on their way to work were in tears and tooting their car horns as they heard the news.

The city beat off strong competition from the five opponents to win the prestigious title that is expected to bring £2bn of investment to the region.

The suspense as Ms Jowell made the announcement was agonising, both at Liverpool's Empire Theatre and at venues in rival cities Newcastle, Birmingham, Bristol, Cardiff and Oxford.

There had been no leaks. Until yesterday Ms Jowell was one of just seven senior figures outside the judging panel who knew that Liverpool had been chosen during their final two day session last Wednesday and Thursday.

It was one of Whitehall's most closely guarded secrets. Even a minister with a Merseyside constituency who collared Ms Jowell in the House of Commons couldn't get the winner out of her.

So, when Ms Jowell and chairman of judges Sir Jeremy Isaacs walked into the media room of the Department of Culture, Media and Sport, near Trafalgar Square, and faced the bank of cameras, there was genuine anticipation.

A half minute preamble about the strength of the field and then, with a brief pause, she put everyone out of their misery.

"The winner is Liverpool." A sharp intake of breath from some Culture department officials and some clapping followed the news as Ms Jowell launched into praise for the city.

"Liverpool is a worthy winner of this honour. Their vision, passion and enthusiasm, coupled with a really spectacular year-long programme, impressed the judges, who chose them from a very strong field."

She said any of the short-listed cities could have won, but added: "The city has promised an impressive array of events for 2008, including spectacular opening and closing ceremonies, which would be a first for a capital of culture, and a range of festivals."

But most of her words were lost on the Liverpool audience, as cheers of excitement and relief filled the Empire's atrium bar.

Tears welled in the eyes of the city's political leaders, whose faces just seconds earlier had been set in sternly controlled expressions.

For two hours, more than 100 bid supporters had nervously awaited the judge's decision, not daring to believe that the four year's hard work could have paid off.

Some could even be heard whispering the name of bookmakers' favourite Newcastle-Gateshead under their breath as Ms Jowell poised herself to make the announcement.

As she spoke the word "Liverpool" in an almost expressionless tone, a torrent of silver confetti was released into the atrium showering over the ecstatic supporters while indoor fireworks lit up the room.

One bid team member looked as though she was about to be sick while another pretended to faint with shock and had to be revived with a glass of the champagne that had already begun to flow.

When the initial exuberance calmed down, the words of jubilation followed.

Coun Storey, who seemed stunned when he heard the result, praised local people for helping the city claim the coveted title.

He said: "The people of Liverpool defined our bid, they took part in culture like no other city and really brought it to life.

"They backed the city to the hilt, talking us up and telling everyone that we meant business and that we would deliver."

Council chief executive David Henshaw said the win marked the start of a new era for the city.

He said: "Liverpudlians will look at June 4 as the moment our city finally began to realize its true potential as a world city.

"We have been away for far too long. Now we are ready to show the UK, Europe and the world what we are made of.

"We will make Britain proud." Sir Bob Scott, Liverpool's 2008 bid leader, added: "This is a momentous day for the people of Liverpool, the North West of England and the whole of Britain.

"This honour is the rocket fuel to propel us to be one of Europe's premier cities.

"We have work to do, but we have the vision, desire and the belief to deliver a year of culture Britain will never forget."

Outside in the city's streets people were walking to work with radios glued to their ears - desperate to hear the news as it happened.

Commuters stepping off the train at Moorfields Station were met with a banner announcing Liverpool's win.

Meanwhile, Ms Jowell and Sir Jeremy were making their way to Euston Station to catch the train to Liverpool, to present a letter of congratulations written by Prime Minister Tony Blair, and join the party.

Sir Jeremy, the former head of the Royal Opera House and ex-chief executive of Channel 4, said it was a "very, very tough decision" but that taken overall "Liverpool looked good, sounded good, feels good to be in and would deliver a really terrific year.

"If one had to say one thing that swung it for Liverpool it would have to be there was a greater sense there that the whole city is involved in the bid and behind the bid." Hinting at the high profile backing from the likes of Sir Paul McCartney and Cherie Blair he said: "A little bit of extra zip from the fan club helps."

The pair were greeted with a fanfare from a military band as they arrived at the station. Lord Mayor Coun Ron Gould led a reception party of civic leaders, together with local children carrying home-made placards and about 200 members of the public.

After a press conference at the Empire, the party went to St George's Plateau for a display of music, arts and performance, before taking a tour of the £18m restoration works at St George's Hall.

Finally they headed back to London, as final preparations were made for last night's town hall party.

The EU will formally respond to Britain's choice next year, but approval is seen as a formality.

Meanwhile last night the Royal Liverpool Philharmonic Orchestra celebrated a proud day for the city with an unscheduled playing of Beethoven's Ode to Joy at their concert at the Philharmonic Hall.